This ban on the bank will be applicable for a period of next six months.
The Reserve Bank of India (RBI) on Thursday imposed several restrictions on the New India Co-operative Bank. The Mumbai -based bank also includes a ban on withdrawal of funds by depositors. This ban has been set up by the central bank amidst supervisory concerns. According to PTI news, the Reserve Bank’s instructions to the New India Co-operative Bank have come into force due to the closure of business on Thursday. These restrictions will remain in force for the next six months period and are subject to reviews.
No amount is allowed to be withdrawn
According to the news, the Reserve Bank said that in view of the current liquidity situation of the bank, the bank has been instructed not to allow withdrawal of any amount from the depositors’ savings bank or current account or any other account. However, the bank has been allowed to set off the loan against deposits under the conditions stated in the above instructions of RBI. It can spend in relation to some essential items like salaries, rent and electricity bills of employees.
There will not be so much things
RBI further said that since the closure of the business on February 13, 2025, the bank will not give any loan or advance amount without prior approval, no one will invest and no one will take any liability including accepting new deposits. . The Reserve Bank said that these instructions are necessary to protect supervisory concerns arising out of the recent physical developments in the bank and the interests of the bank depositors. Eligible deposits will be entitled to receive the insurance claim amount of their deposits up to Rs 5 lakh from deposit insurance and loan guarantee corporation.
Ban on Kotak Mahindra Bank
The Reserve Bank of India (RBI) lifted the sanctions imposed on Kotak Mahindra Bank for more than nine months on 12 February. Business restrictions were imposed on the bank due to concerns on the technology front. The RBI said it is ‘satisfied’ with the corrective measures taken by the private sector bank, and allowed it to issue new credit cards and add new customers through online and mobile banking channels.
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